Newman Ferrara LLP Announces Securities Class Action Against Violin Memory, Inc. and Advises of Lead Plaintiff Deadline
Newman Ferrara LLP recently announced that a class action lawsuit has been filed in the Unites States District Court for the Northern District of California against Violin Memory, Inc. ("Violin" or the "Company") (NYSE: VMEM) and certain officers and directors, alleging violations of federal securities laws.
Investors who purchased Violin common stock pursuant and/or traceable to the Company's September 27, 2013 initial public offering (the "IPO") may apply with the Court to be appointed Lead Plaintiff no later than January 27, 2014. The Lead Plaintiff will direct the litigation on behalf of the other class members.
According to the complaint, on September 27, 2013, Violin Memory Inc. held its IPO at $9.00 per share. Investment banks, including J.P. Morgan, Deutsche Bank Securities, Bank of America, Merrill Lynch, Barclays, Baird, and Pacific Crest Securities acted as underwriters for the IPO. Less than two months later, after the market closed on November 21, 2013, the Company reported earnings that were lower than expectations, that it had burned through half of its IPO cash, and that its expenses were increasing faster than revenue. In connection with its earnings miss, J.P. Morgan, the lead underwriter in the IPO, significantly lowered its price target. Violin's stock plummeted to close at $3.11 per share on November 22, 2013.
Investors who purchased Violin stock in the IPO may contact Newman Ferrara partner Jeffrey M. Norton (jnorton@nfllp.com) by email or call (212) 619-5400 to discuss this lawsuit or the Lead Plaintiff process.
Whistleblowers: Persons with knowledge that may aid in the investigation of this matter are encouraged to contact the firm. Under the Dodd-Frank Wall Street Reform Bill, whistleblowers are protected from employer retaliation and may be entitled to as much as 30 percent of the recovery if the information provided leads to a successful action.
Newman Ferrara maintains a multifaceted practice based in New York City with attorneys specializing in complex commercial and multi-party litigation, securities fraud and shareholder litigation, consumer protection, civil rights, and real estate. For more information, please visit the firm website at www.nfllp.com.
CONTACT:
Newman Ferrara LLP
Jeffrey M. Norton
1250 Broadway, 27th Fl.
New York, NY 10001
Tel: (212) 619-5400